Direct debits

Direct debits

Published: 1/2/2015

Direct debit means a payment service for debiting a payer's payment account, where a payment transaction is initiated by a payee on the basis of the payer's consent given to the payer's own payment service provider, to the payee, or to the payee's payment service provider.

Metodologija - en - izravno terećenje

Methodology

Published: 19/1/2016 Modified: 2/2/2016
TABLE PE1 Direct debit transactions in the Republic of Croatia in kuna 
 
Data presented in this report are collected on the basis of the Decision on the obligation to submit data on the payment system and electronic money (OG 147/2013) and the accompanying Instructions.
The report shows the national payment transactions of debiting the payment accounts of payment service users, as well as transactions of contractual charge of payment cards of payment service users on the basis of the received orders for direct debits in kuna.
Data for the "Number of consents" show the status as at the last day in the reporting month, while data about the number and value of direct debit transactions refer to the total value of data during the month, including the first and the last day in the month.
 
This report covers the following types of direct debit payment transactions:
o one-off and multiple direct debits (in the case of multiple direct debits each payment is counted as a single payment transaction);
o payment of liabilities incurred by using payment cards issued by another payment service provider when the collection of expenses debited from the payment account of the user of a payment service of the credit institution is regulated by a separate contract (a separate contract on direct debit is contracted for the settlement of expenses);
o payment of liabilities incurred by using payment cards issued by a credit institution, when the collection of expenses debited from the payment account of the payment service user (most often the user of a payment card) of the credit institution etc., is regulated by a contract on the issuing of a card or a separate contract on direct debit, 
o charging the payment card by a credit institution or an electronic money institution at the order of the payee, on the basis of the consent of the payer that is at the same time the user of the payment card (e.g. individual payment of bills for a telecommunication service by contractual charge to the payment card) are included in the Report "Issuing of payment instruments", etc.
 
 
Definitions and descriptions
 
1. Direct debit 
"Direct debit" means a payment service for debiting a payer's payment account, where a payment transaction is initiated by a payee on the basis of the payer's consent given to the payer's own payment service provider, to the payee, or to the payee's payment service provider.
 
2. Contractual charge of a payment card by direct debit
The contractual charge to the payment card by direct debit covers payment transactions for which the charging through a payment instrument (payment card) is pre-arranged, initiated by the payee (e.g. payment of bills), and has the elements of direct debit. All debits to the payment instrument for fees, commissions, membership fees, etc. are included.
 
3. Consumer
"Consumer" means a natural person who, in payment service contracts covered by the Payment System Act (OG 133/2009 and 136/2012) is acting for purposes other than his/her trade, business or profession.
 
4. Non-consumer
"Non-consumer" means a legal or natural person other than the consumer.
The following are included:
o legal persons (e.g. corporates, institutions, cooperatives, associations, foundations etc.), craftsmen and other natural persons employed as freelancers or carrying out an economic activity when entering into a contract on payment services or a contract on the issuing of electronic money within the area of their economic activity or freelance occupation,
o entities that do not have legal personality, but that may be the holders of payment accounts (e.g. bodies of state administration, representative offices etc.).
 
5. National payment transaction 
"National payment transaction" means a payment transaction the execution of which involves a payer's payment service provider and a payee's payment service provider, or only one payment service provider, which operate in the Republic of Croatia in accordance with Article 5 of the Payment System Act (OG 133/2009 and 136/2012).
 
Description of the basic fields of the report
1. Columns "TOTAL – Number of transactions" and "TOTAL – Value of transactions"
The columns "TOTAL – Number of transactions" and "TOTAL – Value of transactions" show data about the number and value of transactions of executed direct debits, which refer to the total number/value of transactions during the reporting period, where the value of data includes the number/value of executed direct debits on the first and the last day of the reporting period.
 
2. Column "Number of consents"
The column "Number of consents" shows the number of payer's consents for the execution of a direct debit transaction that the credit institution or the electronic money institution received for debiting the payment accounts of their payment service users or charging their payment card.
 
The number of consents on direct debit is shown as the total number of active consents on direct debit on the last day of the reporting period.
This table shows the consents and payment transactions of direct debit given and credited to the payment account of another service user (e.g. electricity, water, gas and other bills), as well as credited to the reporting entity itself, i.e., credit institution or electronic money institution (e.g. payment of expenses using the delayed debit card when the issuer of the payment card is the reporting entity itself).
Consents are counted by the number of payees (creditors) by each payer, irrespective of the number of payer's payment accounts that are debited and irrespective of whether consent for the execution of direct debits to the benefit of several payees (creditors) has been given by a single contract.
In the cases when a payer gives another (second) consent to the same payee by a new or the same contract, it is counted as two consents (e.g. the consent given for direct debit for monthly expenses of a fixed telephone for a flat and a holiday home).